Understanding The Terms Of Chapter 7 In Knoxville
chapter 7 in Knoxville is a process involved in bankruptcy that enables an individual or business to liquidate assets to resolve debt. To accomplish this or any form of bankruptcy, you are required to hire an attorney to file the necessary documentation and forms properly. A bankruptcy claim requires that you or your attorney discuss repayment options with all of your creditors to determine whether or not the debt is eligible for inclusion in a bankruptcy claim.
Why Negotiations are Important
The reason for these negotiations is to reach an agreement with creditors before your scheduled bankruptcy hearing. Your creditors or associates representing your creditors will attend this hearing. The judge will listen to arguments presented by these creditors during this hearing. Each of these creditors must agree upon the terms of the bankruptcy, and the amount of the debts before the judge approves your claim. By negotiating with creditors before this hearing, you and your creditors will agree to the terms of the bankruptcy.
The Liquidation Process
You will provide your attorney with a list of your personal or business-related assets. Any assets that you do not wish to liquidate for debt resolution purposes should be brought to the attention of your attorney. He or she will inform you as to whether or not you can protect these assets within your bankruptcy claim. Typical exclusions are your home and automobiles. However, if you own more than one vehicle and the additional property is used in the operation of your business, the property may not be eligible for exclusion.
Ceasing Operations of Your Business
As a business owner who chapter 7 in Knoxville as a debt solution, you must realize that this form of bankruptcy will cease all operations of your business. You will retain ownership of the business, but you are not allowed to operate or perform any services during a liquidation-based bankruptcy claim.
Laws that apply to this form of bankruptcy additionally prevent you from making any purchases related to your business until your debts are resolved. You are not allowed to purchase anything on credit until your bankruptcy is discharged by a judge. Property that relates to your business is not seized, but you are required to sell portions of this property to remedy your debts.